The ATO has announced it will closely monitor the activity on the transfer balance account report (TBAR) regime frequency, whether monthly or quarterly, in case it needs to be changed in order to be more effective.
“Whatever reporting model we do decide to go on, SMSFs will have a transitional period and during that transitional period, we will be evaluating what the effects are,” ATO SMSF segment director Maria Iacopino told the Self-managed Independent Superannuation Funds Association Annual SMSF Forum in Melbourne today.
“If we see that a lot of members are exceeding their cap, then we might decide to go from a quarterly to a monthly reporting frequency.
“But if we see that the effects are lower, then we might move from monthly to quarterly or even annual reporting.
“It really does depend on what evaluations we make during the transitional period we have.”
Iacopino added that the ATO acknowledged the TBAR regime was a significant shift for the SMSF industry.
“I agree that SMSFs are unique as they are self-managed, which means you’re looking after your own retirement interests, and self-assessing,” she noted.
“So we are taking on all the feedback and we are looking at ways to make it easier for SMSFs to comply with this new reporting measure.
“And that’s why we haven’t come out yet with the frequency of how SMSFs will be reporting because we’re looking at what the best option is for SMSFs, especially where members are way below the $1.6 million transfer balance cap limit.”
The ATO was also looking to improve the current TBAR form to accommodate SMSFs and avoid data repetition.
On 21 August, the regulator published its position paper requesting industry feedback on the two possible time frame scenarios for SMSFs for events-based reporting under the TBAR regime.
The TBAR regime requires events-based reporting by SMSFs from 1 July 2018, however, SMSFs are able to commence reporting to the ATO next month, Iacopino said.
